Finding North? | June 11, 2021

AUTHOR: Jason J. Roque, MS, CFP®, APMA®, AWMA® TITLE:       Investment Adviser Rep – CCO TAGS:   S&P 500, Earnings, Housing, Jobs, PMI

Markets moved north last week. Is the S&P 500 finding its legs or is there cause for concern?


Markets were mostly flat to open the week. A great signal after ending last week in record territory for the S&P 500. Holding on to those gains may signal more ahead.


The S&P 500 was flat on the day as treasuries got a bid. This is a move that seems to signal investors are beginning to accept Federal Reserve direction. A bid to treasuries is a concession that inflation is likely to not carry as much concern as originally expected.


In a continued bid for safe haven securities, equity markets ended the day slightly lower. The 10-year treasury was getting a bid as it ended the day at 1.47%. This was the lowest level since the beginning of March.


Markets climbed on Thursday. CPI data released showed robust growth of inflation, which typically would elicit a falling market. This indicates that while the number was high (Core CPI at 3.8%) it is not expected that inflation will persist.


As of late, the end of the week has been generally telling for investor sentiment. The data has been light, leaving investor response to really signal what risks the weekend may hold. This Friday we got favorable consumer sentiment projections and a rise in markets. This indicates that the weekends news cycle is not of major concern.


The S&P 500 rose by 0.41% for the week. Movement was fairly muted, but investor sentiment was strong. The volatility could tick up from here as volumes will moderate over the summer months. Lighter volume typically brings choppier waters.

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